Edelweiss-backed Sekura Roads could be anchor investors in IL&FS road InvIT

Our Bureau Mumbai | Updated on October 30, 2021

NCLT has approved IL&FS to launch the InvIT with six road projects.

Sekura Roads Limited (SRL) could be anchor investors in the infrastructure investment trust (InvIT) involving six road projects to be launched by IL&FS.

Sekura Roads is backed by the Edelweiss Infrastructure Yield Plus fund (EIYP), India’s largest Infrastructure Category-I Alternative Investment Funds.

The National Company Law Tribunal (NCLT) has approved IL&FS to launch the InvIT with six road projects – Barwa Adda Expressway Limited, Baleshwar Kharagpur Expressway Limited, Sikar Bikaner Highway Limited, East Hyderabad Expressway Limited, Moradabad Bareilly Expressway Limited and Jharkhand Road Projects Implementation Company Limited.

These road projects will be transferred to the newly formed Roadstar Infra Investment Trust under its InvIT Phase I - basis approvals from Authority and the lenders, IL&FS said in a statement.

These six road projects, Special Purpose Vehicles (SPVs) will be transferred to the InvIT at an aggregate valuation of ₹9,214 crore - determined by an independent valuer appointed by SEBI InvIT Regulations.

On transfer to the InvIT, these six SPVs would move away from the debt servicing moratorium extended to IL&FS Group companies. They will start servicing their debt, resulting in the resolution of these SPVs.

State Bank of India, Punjab National Bank, Canara Bank, Bank of India & Indian Overseas Bank are some of the key lenders to IL&FS Transportation Networks Limited (ITNL), a subsidiary of IL&FS, and will largely benefit from the formation of the InvIT.

Sekura Roads has shown initial interest to become anchor investors in the InvIT, said a person familiar with the development.

IL&FS InvIT will be the first vehicle for resolving debt owed to lenders of ITNL and other group entities. It forms an essential part of the overall group resolution framework adopted by the new Board of IL&FS.

Being one of the larger InvIT in the road sector, the proposed InvIT can become a strong Infrastructure player in the country, with an appropriate management team and supervision. The InvIT could act as a growth vehicle and add value to the initial unit holders who will be the lenders of the Group.

IL&FS proposes to address more than Rs 16,000 crore through InvIT in Phases. This approval by NCLT for Phase I is part of the said process. IL&FS will be adding additional five road assets in Phase 2 on receipt of applicable approvals, IL&FS said.

Published on October 30, 2021

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